Transcript
MANAGING THE
BRAND
WHAT IS A BRAND?What is the difference between a product and Brand?
Carbonated Water, Phosphoric Acid, Natural Flavors, Caramel Color…
Brand Product
BRAND VS PRODUCTProductProduct – something the customer uses until something better comes along
Good at treating pain because effective
More potent and effective therefore better at treating
pain
BrandBrand – something the customer has a relationship with, and uses because they want to
- Emotional connection between the brand and the customer
CO2H
CH3
H3C
CH32 7
3NH
8
CH2CO2H
12 C1
Ibuprofen Diclofeac
WHAT IS A BRAND?
Tangible productTangible product
Basic brand
Name, Design, Quality, Features
Brand
Relationship with customers
• A brand is a sum of all the characteristics, tangible and intangible, that makes your product differentiated or unique in the minds of the customer
• The key difference between a brand and a product:
How the brand adds value to customers on more that just a functional level
WHY ARE BRANDS IMPORTANT?
• Can provide and emotional reason for preference beyond the functional
•Important if:
- The product has direct intangible effect
- Little or no functional competitive advantage for product
- Numerous competitor products
- More competitors coming onto the scene
• Therefore we have more chances of being successful, if we can give customers reason to prescribe based on more than just functional aspects of the product
VOLTARENDiclofenacH3C
CO2H
CH3
Versus
BULDING BRANDS
Why do we choose a brand?
Combination of functional and emotional benefit that gives use value
Distilled into : The Brand Value equation
BRAND VALUE EQUATION
Perceived value for money
+
Functional benefit
+
Emotional benefit
= Brand ValueBrand Value
BRAND VALUE EQUATION
VfMVfM
FunctionalFunctional
EmotionalEmotional
Cost Justification
Reason to Re-use
Reason to use
BRAND VALUE EQUATION
VfM
Emotional
Functional
VfMFunctional
Emotional
In different situations Brand value equation should be different
Significant product differential and situation where Significant product differential and situation where customers really make functional-based decisionscustomers really make functional-based decisions
Limited Product differential and situation where Limited Product differential and situation where customer really make balanced decisionscustomer really make balanced decisions
Understanding the relative importance of the Understanding the relative importance of the elements of the BVE is keyelements of the BVE is key
FRAMEWORK FOR DERIVING BRAND POSITIONING
Product Positioning
The Unique Selling Proposition
FunctionalBenefit
Emotional Benefit
Perceived Value For Money Benefit
Brand Value Equation
Brand Positioning
Key Promotional Messages
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